Nigerian Communities Sue Shell for $310 Million Over Onshore Asset Sale

Nigerian communities are demanding 505 billion naira in damages from Shell, accusing the company of breaching a court order by selling its onshore assets. The Federal High Court in Abuja has been urged to halt the sale, alleging Shell caused environmental damage. Shell maintains spills were due to theft.

Nigerian communities are demanding a substantial 505 billion naira ($310 million) in damages from energy giant Shell. They accuse the company of violating a court order by proceeding with a deal to sell its onshore assets in the Niger Delta, according to court documents unveiled on Friday.

Shell plans to exit Nigeria's onshore oil and gas sector, having agreed in January to sell its business to a consortium of five predominantly local companies for $2.4 billion. However, over 1,200 representatives from the Ilaje communities in the Niger Delta have petitioned the Federal High Court in Abuja to halt the transaction, arguing Shell is flouting a December 2023 ruling that suspended any asset sales pending the resolution of a compensation lawsuit.

The community claims Shell is responsible for an oil spill that compromised local waterways and agricultural land. In the court documents, the emphasis is on penalizing Shell for proceeding with the asset sale, leaving residents in continued distress due to the breach of court orders. Shell declined to comment immediately, and the court has not yet scheduled a hearing for the case. Approval from energy regulators and the petroleum minister for the asset sale is still pending.

(With inputs from agencies.)